Press Release (ePRNews.com) - Belize City, Belize - Apr 25, 2017 - Hedgestone Group works to make financial trading available to everyone, but understands that not everyone is prepared to enter the global financial marketplace. The Contract for Difference, or CFD, is one tool Hedgestone uses to bring the markets within reach.
A Contract for Difference is a financial trading tool that allows an investor to trade on a particular asset without having to actually buy or sell the asset directly. When buying a CFD, the trader is actually speculating on price movements in the underlying asset. The CFD will specify a starting time and price, and a closing time. The trader can choose a contract to buy or sell; choosing a “buy” option at the start assumes the price will go up, while choosing a “sell” option assumes the price will go down. The trader gains or loses based on the price movement relative to the original buy or sell decision.
The CFD is a financial instrument designed to simplify otherwise more complex trading assets and reduce the entry price to such trading. In dealing with CFDs, a trader is able to use leverage to increase purchasing power; in cases, as little as €500 may suffice to purchase a contract worth €10,000 or more, whereas in trading stocks directly the investor is required to front the full purchase price.
CFDs are also useful for the range of assets they make available to traders. A contract for difference can be used to trade individual stocks, stock indexes, commodities such as oil or gold, and currencies. They are versatile instruments that help to ring online financial markets within reach of traders with limited capital, and part of Hedgestone Group’s commitment to providing the best possible service to its financial trading customers. Learn more about CFDs at https://www.hedgestonegroup.com/.
Source : Hedgestone Group